Israeli Finance Minister Smotrich Terminates Trade Agreement with Turkiye

Israeli Finance Minister Bezalel Smotrich has announced a significant decision regarding trade relations with Turkiye. Israel plans to terminate its free trade agreement with Turkiye and impose a 100 percent tariff on imports from the country. This move comes in response to Turkish President Tayyip Erdogan's decision to halt exports to Israel.

During the recent Israel-Hamas conflict, Turkiye had declared a halt in exports to Israel, citing humanitarian concerns in Palestinian territories. However, Turkish companies have been given a three-month window to fulfill existing orders through third-party countries.

Minister Smotrich criticized Erdogan's actions as an economic boycott and a violation of international trade agreements. He emphasized that Israel's measures would remain in place as long as Erdogan is in power, hinting at a possible resumption of trade relations if a more favorable leader is elected in Turkiye.

Under the proposed plan, all preferential customs rates for Turkish imports to Israel under the free trade agreement would be revoked. Additionally, a 100 percent duty would be imposed on all Turkish goods entering Israel, in addition to existing tariffs.

The finance, economy, and foreign ministries are set to collaborate on strengthening Israel's domestic manufacturing capabilities and diversifying import sources to reduce dependence on Turkiye. The Israeli Manufacturers' Association has expressed support for Smotrich's strategy as a suitable response to Erdogan's actions.

Israel's decision to terminate the free trade agreement with Turkiye and impose a 100 percent tariff marks a significant development in the ongoing trade tensions between the two countries. The repercussions of this decision are likely to impact bilateral trade relations and necessitate adjustments in Israel's import strategies. As the situation unfolds, it remains to be seen how both nations will navigate these challenges and potentially seek avenues for future cooperation.